Main Article Content
Abstract
Purpose – The objective of this study is to examine the impact of the dynamic environment on the relationship between intangible resources and sustainable competitive advantage in large and medium-sized manufacturing firms operating across various sectors.
Design/methodology/approach – The research sample was selected using cluster random sampling, which is based on company size, namely large and medium-sized companies only, totalling 257 companies as the unit of analysis. A questionnaire was utilized to collect data. While the study employed residual technique and the Hayes (2012) method for variable assessment, the primary method used was a causal analysis.
Findings – The findings indicate that the dynamic environment does not act as a moderating variable, implying that the sustainability of the organization is unaffected by the firm’s dynamic environment.
Research limitations/implications – Research findings can play a pivotal role in corporate strategy, enabling companies to reach a sustainable competitive advantage by closely monitoring environmental changes.
Practical implications – This research can assist companies in developing business strategies that are more adaptive to environmental changes, enabling them to actively monitor and identify emerging opportunities and threats. By doing so, companies can take appropriate steps to maintain their competitive advantage.
Originality/value – Previous researchers have rarely conducted this research, primarily due to a lack of understanding on how to effectively connect dynamic environments with intangible resources in order to achieve sustainable competitive advantage.
Keywords
Article Details
Copyright (c) 2024 Muhammad Wadud Rahmat
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
- Abbas, M. W., & Ul Hassan, M. (2017). Moderating Impact of Environmental Turbulence on Relationship between Business Innovation and Business Performance. Pakistan Journal of Commerce and Social Sciences, 11(2), 576–596. https://www.econstor.eu/handle/10419/188306
- AL-Mubaraki, H. M., & Busler, M. (2017). The Impact of Innovation Best Practices in Economic Development. International Journal of Economics and Management Engineering, 11(4), 993–999. https://doi.org/10.5281/zenodo.1130601
- Ardanari, S. D., & Aprilina, T. (2019). Kumpulan Berita Resmi Statistik Provinsi Sumatera Selatan 2019 (T. W. Dharma (ed.)). CV.ALDEA. https://sumsel.bps.go.id/publication/2019/12/13/9aa738442d0470dbbbe986ed/kumpulan-berita-resmi-statistik-provinsi-sumatera-selatan-2019.html
- Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
- Behram, N. K., & Özdemirci, A. (2014). The Empirical Link between Environmental Conditions, Organizational Culture, Corporate Entrepreneurship and Performance: The Mediating Role of Corporate Entrepreneurship. International Journal of Business and Social Science, 5(2), 264–276. https://ijbssnet.com/journals/Vol_5_No_2_February_2014/30.pdf
- Bontis, N., Keow, W. C. C., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85–100. https://doi.org/10.1108/14691930010324188
- Cheng, C. C. J., & Shiu, E. C. (2015). The inconvenient truth of the relationship between open innovation activities and innovation performance. Management Decision, 53(3), 625–647. https://doi.org/10.1108/MD-03-2014-0163
- Field, A. (2017). Discovering Statistics Using SPSS (5th ed.). Sage Publications.
- Forrest, J. Y.-L., & Tallapally, P. (2018). Customers Are Less Patient: Sustainable Advantage Becomes Transient and The Key for Firms to Succeed in Fast Changing Markets. Journal of Business, Economics and Technology, 21(1), 1–14. https://www.nabet.us/j_archives/JBET18sp.pdf#page=5
- Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge Management: An Organizational Capabilities Perspective. Journal of Management Information Systems, 18(1), 185–214. https://doi.org/10.1080/07421222.2001.11045669
- Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
- Hayes, A. F. (2012). PROCESS: A Versatile Computational Tool for Observed Variable Mediation, Moderation, and Conditional Process Modeling. https://is.muni.cz/el/1423/podzim2014/PSY704/50497615/hayes_2012_navod_process.pdf
- Hosseini, A. S., Soltani, S., & Mehdizadeh, M. (2018). Competitive Advantage and Its Impact on New Product Development Strategy (Case Study: Toos Nirro Technical Firm). Journal of Open Innovation: Technology, Market, and Complexity, 4(2), 17. https://doi.org/10.3390/joitmc4020017
- Hou, B., Hong, J., Zhu, K., & Zhou, Y. (2019). Paternalistic leadership and innovation: the moderating effect of environmental dynamism. European Journal of Innovation Management, 22(3), 562–582. https://doi.org/10.1108/EJIM-07-2018-0141
- Ilinova, A., Dmitrieva, D., & Kraslawski, A. (2021). Influence of COVID-19 pandemic on fertilizer companies: The role of competitive advantages. Resources Policy, 71, 102019. https://doi.org/10.1016/j.resourpol.2021.102019
- Jawed, I., & Siddiqui, D. A. (2020). What Matters for Firms’ Performance: Capabilities, Tangible or Intangible Resources? Evidence From Corporate Sectors on Pakistan. In SSRN Paper (SSRN Paper). https://doi.org/10.2139/ssrn.3510562
- Jiang, X., Yang, Y., Pei, Y.-L., & Wang, G. (2016). Entrepreneurial Orientation, Strategic Alliances, and Firm Performance: Inside the Black Box. Long Range Planning, 49(1), 103–116. https://doi.org/10.1016/j.lrp.2014.09.003
- Keller, G. (2018). Statistics for Management and Economics (11th ed.). Cengage Learning.
- Kimani, G. K., & Ogutu, M. (2017). The Effect of External Environment and Firm Size on The Relationship Between Knowledge Management and Competitive Advantage. European Journal of Business and Strategic Management, 2(9), 71–84. https://iprjb.org/journals/index.php/EJBSM/article/view/569
- Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance. Journal of Marketing, 69(2), 24–41. https://doi.org/10.1509/jmkg.69.2.24.60761
- Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Is Market Orientation a Source of Sustainable Competitive Advantage or Simply the Cost of Competing? Journal of Marketing, 75(1), 16–30. https://doi.org/10.1509/jm.75.1.16
- Lichtenthaler, U. (2017). Absorptive Capacity, Environmental Turbulence, and the Complementarity of Organizational Learning Processes. Academy of Management Journal, 56(6), 1830. https://doi.org/10.5465/amj.2013.3001
- Ma, H., Sun, Q., Gao, Y., & Gao, Y. (2019). Resource Integration, Reconfiguration, and Sustainable Competitive Advantages: The Differences between Traditional and Emerging Industries. Sustainability, 11(2), 551. https://doi.org/10.3390/su11020551
- Martinez-Conesa, I., Soto-Acosta, P., & Carayannis, E. G. (2017). On the path towards open innovation: assessing the role of knowledge management capability and environmental dynamism in SMEs. Journal of Knowledge Management, 21(3), 553–570. https://doi.org/10.1108/JKM-09-2016-0403
- McArthur, A. W., & Nystrom, P. C. (1991). Environmental dynamism, complexity, and munificence as moderators of strategy-performance relationships. Journal of Business Research, 23(4), 349–361. https://doi.org/10.1016/0148-2963(91)90020-X
- Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information and Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434
- Ndegwa, P. W., Kilika, J. M., & Muathe, S. M. A. (2019). The Moderating Role of External Environment on The Relationship Between Resource Isolating Mechanism and Sustainable Competitive Advantage. International Journal of Management, 10(3), 50–59. https://doi.org/10.34218/IJM.10.3.2019.006
- Porter, M. E. (1980). Extracts from Competitive Strategy: techniques for analyzing industries and competitors: with a new introduction. The Free Press USA.
- Prahalad, C. K. (1993). The Role of Core Competencies in the Corporation. Research-Technology Management, 36(6), 40–47. https://doi.org/10.1080/08956308.1993.11670940
- Pulka, B. M., Ramli, A., & Mohamad, A. (2019). The Moderating Effect of External Environmental Characteristics on the Relationship between Entrepreneurial Orientation and SMEs Performance. International Journal of Business and Technopreneurship, 9(2), 165–184.
- Schilke, O. (2014). On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism. Strategic Management Journal, 35(2), 179–203. https://doi.org/10.1002/smj.2099
- Schmidt, A. F., & Finan, C. (2018). Linear regression and the normality assumption. Journal of Clinical Epidemiology, 98, 146–151. https://doi.org/10.1016/j.jclinepi.2017.12.006
- Sekaran, U., & Bougie, R. (2016). Research Methods For Business: A Skill Building Approach (7th ed.). John Wiley and Sons, Inc.
- Snow, C. C., & Hrebiniak, L. G. (1980). Strategy, Distinctive Competence, and Organizational Performance. Administrative Science Quarterly, 25(2), 317–336. https://doi.org/10.2307/2392457
- Stacey, R., & Mowles, C. (2016). Strategic Management and Organisational Dynamics : The challenge of complexity to ways of thinking about organisations (7th ed.). Pearson Education Limited.
- Tajeddini, K., Martin, E., & Ali, A. (2020). Enhancing hospitality business performance: The role of entrepreneurial orientation and networking ties in a dynamic environment. International Journal of Hospitality Management, 90, 102605. https://doi.org/10.1016/j.ijhm.2020.102605
- Teece, D. J. (2019). A capability theory of the firm: an economics and (Strategic) management perspective. New Zealand Economic Papers, 53(1), 1–43. https://doi.org/10.1080/00779954.2017.1371208
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://www.jstor.org/stable/3088148
- Tilabi, S., Tasmin, R., Takala, J., Palaniappan, R., Hamid, N. A. A., & Ngadiman, Y. (2019). Technology Development Process and Managing Uncertainties with Sustainable Competitive Advantage Approach. Acta Logistica, 6(4), 131–140. https://doi.org/10.22306/al.v6i4.140
- Veselinova, E., Miceski, T., & Samonikov, M. G. (2016). The Corporate Brand: An Intangible Resource as a Basis for Sustainable Competitive Advantage. Journal of Economics, 1(1). https://js.ugd.edu.mk/index.php/JE/article/view/1384
- Wadud, M. (2021). Sumber Daya Perusahaan Tidak Berwujud dan Keunggulan Kompetitif Berkelanjutan dalam Lingkungan Dinamis pada Perusahaan Manufaktur di Sumatera Selatan [Universitas Sriwijaya]. https://repository.unsri.ac.id/57793/55/RAMA_61001_01023621722006.pdf
- Wales, W., Gupta, V. K., Marino, L., & Shirokova, G. (2019). Entrepreneurial orientation: International, global and cross-cultural research. International Small Business Journal: Researching Entrepreneurship, 37(2), 95–104. https://doi.org/10.1177/0266242618813423
- Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading Digital: Turning Technology into Business Transformation. Harvard Business Review Press.
- Worthington, I., Britton, C., & Thompson, E. (2018). The Business Environment (8th ed.). Pearson.
- Youndt, M. A., Subramaniam, M., & Snell, S. A. (2004). Intellectual Capital Profiles: An Examination of Investments and Returns. Journal of Management Studies, 41(2), 335–361. https://doi.org/10.1111/j.1467-6486.2004.00435.x
- Zhao, X., & Sun, B. (2016). The influence of Chinese environmental regulation on corporation innovation and competitiveness. Journal of Cleaner Production, 112, 1528–1536. https://doi.org/10.1016/j.jclepro.2015.05.029
References
Abbas, M. W., & Ul Hassan, M. (2017). Moderating Impact of Environmental Turbulence on Relationship between Business Innovation and Business Performance. Pakistan Journal of Commerce and Social Sciences, 11(2), 576–596. https://www.econstor.eu/handle/10419/188306
AL-Mubaraki, H. M., & Busler, M. (2017). The Impact of Innovation Best Practices in Economic Development. International Journal of Economics and Management Engineering, 11(4), 993–999. https://doi.org/10.5281/zenodo.1130601
Ardanari, S. D., & Aprilina, T. (2019). Kumpulan Berita Resmi Statistik Provinsi Sumatera Selatan 2019 (T. W. Dharma (ed.)). CV.ALDEA. https://sumsel.bps.go.id/publication/2019/12/13/9aa738442d0470dbbbe986ed/kumpulan-berita-resmi-statistik-provinsi-sumatera-selatan-2019.html
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Behram, N. K., & Özdemirci, A. (2014). The Empirical Link between Environmental Conditions, Organizational Culture, Corporate Entrepreneurship and Performance: The Mediating Role of Corporate Entrepreneurship. International Journal of Business and Social Science, 5(2), 264–276. https://ijbssnet.com/journals/Vol_5_No_2_February_2014/30.pdf
Bontis, N., Keow, W. C. C., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85–100. https://doi.org/10.1108/14691930010324188
Cheng, C. C. J., & Shiu, E. C. (2015). The inconvenient truth of the relationship between open innovation activities and innovation performance. Management Decision, 53(3), 625–647. https://doi.org/10.1108/MD-03-2014-0163
Field, A. (2017). Discovering Statistics Using SPSS (5th ed.). Sage Publications.
Forrest, J. Y.-L., & Tallapally, P. (2018). Customers Are Less Patient: Sustainable Advantage Becomes Transient and The Key for Firms to Succeed in Fast Changing Markets. Journal of Business, Economics and Technology, 21(1), 1–14. https://www.nabet.us/j_archives/JBET18sp.pdf#page=5
Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge Management: An Organizational Capabilities Perspective. Journal of Management Information Systems, 18(1), 185–214. https://doi.org/10.1080/07421222.2001.11045669
Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
Hayes, A. F. (2012). PROCESS: A Versatile Computational Tool for Observed Variable Mediation, Moderation, and Conditional Process Modeling. https://is.muni.cz/el/1423/podzim2014/PSY704/50497615/hayes_2012_navod_process.pdf
Hosseini, A. S., Soltani, S., & Mehdizadeh, M. (2018). Competitive Advantage and Its Impact on New Product Development Strategy (Case Study: Toos Nirro Technical Firm). Journal of Open Innovation: Technology, Market, and Complexity, 4(2), 17. https://doi.org/10.3390/joitmc4020017
Hou, B., Hong, J., Zhu, K., & Zhou, Y. (2019). Paternalistic leadership and innovation: the moderating effect of environmental dynamism. European Journal of Innovation Management, 22(3), 562–582. https://doi.org/10.1108/EJIM-07-2018-0141
Ilinova, A., Dmitrieva, D., & Kraslawski, A. (2021). Influence of COVID-19 pandemic on fertilizer companies: The role of competitive advantages. Resources Policy, 71, 102019. https://doi.org/10.1016/j.resourpol.2021.102019
Jawed, I., & Siddiqui, D. A. (2020). What Matters for Firms’ Performance: Capabilities, Tangible or Intangible Resources? Evidence From Corporate Sectors on Pakistan. In SSRN Paper (SSRN Paper). https://doi.org/10.2139/ssrn.3510562
Jiang, X., Yang, Y., Pei, Y.-L., & Wang, G. (2016). Entrepreneurial Orientation, Strategic Alliances, and Firm Performance: Inside the Black Box. Long Range Planning, 49(1), 103–116. https://doi.org/10.1016/j.lrp.2014.09.003
Keller, G. (2018). Statistics for Management and Economics (11th ed.). Cengage Learning.
Kimani, G. K., & Ogutu, M. (2017). The Effect of External Environment and Firm Size on The Relationship Between Knowledge Management and Competitive Advantage. European Journal of Business and Strategic Management, 2(9), 71–84. https://iprjb.org/journals/index.php/EJBSM/article/view/569
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance. Journal of Marketing, 69(2), 24–41. https://doi.org/10.1509/jmkg.69.2.24.60761
Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Is Market Orientation a Source of Sustainable Competitive Advantage or Simply the Cost of Competing? Journal of Marketing, 75(1), 16–30. https://doi.org/10.1509/jm.75.1.16
Lichtenthaler, U. (2017). Absorptive Capacity, Environmental Turbulence, and the Complementarity of Organizational Learning Processes. Academy of Management Journal, 56(6), 1830. https://doi.org/10.5465/amj.2013.3001
Ma, H., Sun, Q., Gao, Y., & Gao, Y. (2019). Resource Integration, Reconfiguration, and Sustainable Competitive Advantages: The Differences between Traditional and Emerging Industries. Sustainability, 11(2), 551. https://doi.org/10.3390/su11020551
Martinez-Conesa, I., Soto-Acosta, P., & Carayannis, E. G. (2017). On the path towards open innovation: assessing the role of knowledge management capability and environmental dynamism in SMEs. Journal of Knowledge Management, 21(3), 553–570. https://doi.org/10.1108/JKM-09-2016-0403
McArthur, A. W., & Nystrom, P. C. (1991). Environmental dynamism, complexity, and munificence as moderators of strategy-performance relationships. Journal of Business Research, 23(4), 349–361. https://doi.org/10.1016/0148-2963(91)90020-X
Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information and Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434
Ndegwa, P. W., Kilika, J. M., & Muathe, S. M. A. (2019). The Moderating Role of External Environment on The Relationship Between Resource Isolating Mechanism and Sustainable Competitive Advantage. International Journal of Management, 10(3), 50–59. https://doi.org/10.34218/IJM.10.3.2019.006
Porter, M. E. (1980). Extracts from Competitive Strategy: techniques for analyzing industries and competitors: with a new introduction. The Free Press USA.
Prahalad, C. K. (1993). The Role of Core Competencies in the Corporation. Research-Technology Management, 36(6), 40–47. https://doi.org/10.1080/08956308.1993.11670940
Pulka, B. M., Ramli, A., & Mohamad, A. (2019). The Moderating Effect of External Environmental Characteristics on the Relationship between Entrepreneurial Orientation and SMEs Performance. International Journal of Business and Technopreneurship, 9(2), 165–184.
Schilke, O. (2014). On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism. Strategic Management Journal, 35(2), 179–203. https://doi.org/10.1002/smj.2099
Schmidt, A. F., & Finan, C. (2018). Linear regression and the normality assumption. Journal of Clinical Epidemiology, 98, 146–151. https://doi.org/10.1016/j.jclinepi.2017.12.006
Sekaran, U., & Bougie, R. (2016). Research Methods For Business: A Skill Building Approach (7th ed.). John Wiley and Sons, Inc.
Snow, C. C., & Hrebiniak, L. G. (1980). Strategy, Distinctive Competence, and Organizational Performance. Administrative Science Quarterly, 25(2), 317–336. https://doi.org/10.2307/2392457
Stacey, R., & Mowles, C. (2016). Strategic Management and Organisational Dynamics : The challenge of complexity to ways of thinking about organisations (7th ed.). Pearson Education Limited.
Tajeddini, K., Martin, E., & Ali, A. (2020). Enhancing hospitality business performance: The role of entrepreneurial orientation and networking ties in a dynamic environment. International Journal of Hospitality Management, 90, 102605. https://doi.org/10.1016/j.ijhm.2020.102605
Teece, D. J. (2019). A capability theory of the firm: an economics and (Strategic) management perspective. New Zealand Economic Papers, 53(1), 1–43. https://doi.org/10.1080/00779954.2017.1371208
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://www.jstor.org/stable/3088148
Tilabi, S., Tasmin, R., Takala, J., Palaniappan, R., Hamid, N. A. A., & Ngadiman, Y. (2019). Technology Development Process and Managing Uncertainties with Sustainable Competitive Advantage Approach. Acta Logistica, 6(4), 131–140. https://doi.org/10.22306/al.v6i4.140
Veselinova, E., Miceski, T., & Samonikov, M. G. (2016). The Corporate Brand: An Intangible Resource as a Basis for Sustainable Competitive Advantage. Journal of Economics, 1(1). https://js.ugd.edu.mk/index.php/JE/article/view/1384
Wadud, M. (2021). Sumber Daya Perusahaan Tidak Berwujud dan Keunggulan Kompetitif Berkelanjutan dalam Lingkungan Dinamis pada Perusahaan Manufaktur di Sumatera Selatan [Universitas Sriwijaya]. https://repository.unsri.ac.id/57793/55/RAMA_61001_01023621722006.pdf
Wales, W., Gupta, V. K., Marino, L., & Shirokova, G. (2019). Entrepreneurial orientation: International, global and cross-cultural research. International Small Business Journal: Researching Entrepreneurship, 37(2), 95–104. https://doi.org/10.1177/0266242618813423
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading Digital: Turning Technology into Business Transformation. Harvard Business Review Press.
Worthington, I., Britton, C., & Thompson, E. (2018). The Business Environment (8th ed.). Pearson.
Youndt, M. A., Subramaniam, M., & Snell, S. A. (2004). Intellectual Capital Profiles: An Examination of Investments and Returns. Journal of Management Studies, 41(2), 335–361. https://doi.org/10.1111/j.1467-6486.2004.00435.x
Zhao, X., & Sun, B. (2016). The influence of Chinese environmental regulation on corporation innovation and competitiveness. Journal of Cleaner Production, 112, 1528–1536. https://doi.org/10.1016/j.jclepro.2015.05.029